Let’s check the market. In the United States, daily fatalities from the coronavirus have sharply fallen. Thus, states make plans to get businesses open again.
Moreover, there was another sign of improving sentiment of risk. Thus, the dollar traded near a two-week low of 0.9597 against the safe-haven Swiss franc.
However, Trump’s top infectious disease adviser said that the United States President’s target for restarting the economy by May 1 is overly optimistic. Thus, many analysts remain cautious.
Another factor that weighs on the dollar is a large amount of greenback liquidity provisions, monetary easing, and credit backstops. In the past month, the United States central bank unleashed those measures to contain the economic damage caused by the pandemic.
On Tuesday, the Federal Reserve began a massive new lending program. Moreover, the Federal Reserve took measures of a cumulative impact so far, and it has unleashed a flood of dollars.
The United States and Over Optimistic Trump
Later Wednesday, the United States currency faced a further test. Thus, the release of industrial production and retail sales will most probably provide more evidence of the economic costs of lockdowns.
Moreover, this year the global economy will most probably shrink by 3.0%. It is because of a stunning coronavirus-driven collapse, which marked the steepest downturn since the Great Depression of 1930. The International Monetary Fund shared this information on Tuesday.
The yuan fell slightly to 7.0560 per dollar in the onshore market.
On April 20, China’s central bank is expected, lowering the benchmark of the country’s loan prime rate. It is to bring down financing costs for companies hit by the pandemic. On Friday, China will release GDP (gross domestic product) for the first quarter.
Late last year, the coronavirus first emerged in the Central Chinese city of Wuhan. Following draconian restrictions used to limit its spread, China’s economy is only just starting to restart.
This is the current news of the market.
- Trading Instrument